UK unemployment fell by 121,000 to 2.12 million in the three months to May, official figures show.
The figure is the lowest level in nearly six years, according to the Office for National Statistics (ONS).
The rate of unemployment also fell again, to 6.5% from 6.6% in the three months to April.
The number of people claiming jobseeker's allowance last month fell by 36,300 to 1.04 million, the ONS added.
Prime Minister David Cameron hailed the figures as proof that the government's economic plan was working.
He said: "Today's figures show more people have the security of a job than ever before. Full employment is a key aim of our long-term economic plan."
Wage growth slows
But the growth of wages slowed down again. Average wages in March to May including bonuses were just 0.3% higher than a year ago. Average wage rises excluding bonuses rose in that time by 0.7%.
Wage growth has been steadily declining since the first quarter of this year. Between January and March, annual wage growth stood at 1.9%.
The latest figures show wage rises including bonuses are at their lowest since 2009, while excluding bonuses average wage increases are their lowest since 2001.
They also show that more than 78% of men and 68% of women are in work, giving an employment rate of 73.1%.
The government said this was now equal to the record rate of employment set in 2005.
TUC general secretary Frances O'Grady said: "It's good to see unemployment falling, but with pay growth falling to a record low, serious questions must be asked about the quality of jobs being created in Britain today.
Continue reading the main story"If all the recovery can deliver is low-paid, low-productivity jobs - many of which don't offer enough hours to get by - then it will pass most working people by and Britain's long-term economic prospects will be seriously diminished."
Full employmentThe ONS added that more than 4.5 million people were self-employed, the highest since records began in 1992, after an increase of 404,000 over the past year.
The Bank of England has recently said it may have underestimated the UK's amount of spare capacity in the economy by as much as 0.5% of the country's annual economic output.
If so, it means employers have room to keep hiring for some time before they have to increase wages to attract scarce workers.
But low wage growth could also keep interest rates at 0.5% for longer than currently expected.
Robert Wood, UK economist at investment bank Berenberg added: "Wage growth remains extremely weak, but that cannot last much longer with unemployment falling this fast. We look for a Bank of England rate hike in November."
Have you gained employment in the past three months? You can share your experiences with us by emailing haveyoursay@bbc.co.uk using 'unemployment' in the subject heading.
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